Santos’ Narrabri gas project could be linked to the domestic market following the company’s acquisition of Hunter Gas Pipeline Pty Ltd.
Hunter Gas Pipeline owns an approved underground gas pipeline route from Wallumbilla in Queensland to Newcastle, with the route passing in proximity to the Narrabri development.
In a statement, the company said its goal is to work with infrastructure developers and owners to construct the pipeline and deliver much-needed gas to east coast domestic markets in the shortest timeframe possible.
“The pipeline will also be designed to transport hydrogen as customer demand evolves during the energy transition,” the company’s statement read.
Santos’ midstream and clean fuels president Brett Woods said the acquisition provides a pathway for the delivery of gas from the Narrabri development to the domestic market, subject to a short connection to the main pipeline, which is currently in the planning phase.
However, the development has been met with opposition from environmental groups which say affected landowners across the pipeline route are ready to defend themselves.
“At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project, which is 100 per cent committed to the domestic market, will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families,” Santos’ midstream and clean fuels president Brett Woods said.
“It will make more gas available to cover peak demand periods, especially in circumstances where gas power generators are called on unexpectedly to replace wind, solar and coal outages, as we have seen this winter.
“Acquiring the Hunter Gas Pipeline route is an important step for the Narrabri project, with appraisal drilling planned later this year, pending various native title and environmental management plan approvals.
“Once fully operational, Narrabri has the potential to deliver more than half NSW’s gas demand, creating a more secure, local and affordable supply for businesses, manufacturers and families.”
In its announcement, Santos said the Hunter Gas Pipeline already has planning approval and, once constructed, will potentially connect the Wallumbilla Gas Supply Hub in Queensland to NSW, providing a second route to southern markets for Queensland gas and adding competition to the domestic market.
“This would remove occasional supply constraints in existing pipelines, which occur at exactly the times when demand for Queensland gas is highest in southern markets. With Queensland the main source of gas supply growth for the whole east coast market, this pipeline will be vital to secure southern supplies over time,” Santos’ statement read.
Mr Woods said the route of the underground pipeline was specifically chosen to ensure minimum impact on communities, landholders and the environment, but there is room to make further improvements as needed.
“There are also offtake points at several regional towns along the route to Newcastle, providing a new opportunity for gas supply to power generators, manufacturers, businesses and households in the Hunter region,” he said.
“The cheapest gas supply will always be the gas on your doorstep because that reduces transport, storage and other handling costs.
“We will work in partnership with landholders and the local councils that represent communities the pipeline will traverse, to deliver new gas supply to domestic markets and maximise social and economic benefits of both the Narrabri gas project and the Hunter Gas Pipeline.”
In response to Santos’ purchase, environmental advocacy group Lock the Gate said the company would stir up a hornet’s nest of fierce opposition after acquiring the rights to the pipeline route.
Lock the Gate said Santos will now join a fight it can’t possibly win, with hundreds of landowners along the existing pipeline route organised and ready to defend their businesses and the region’s high quality soils.
Mullaley Gas and Pipeline Accord spokesperson and beef farmer Margaret Fleck said an estimated 800 properties in NSW alone would be impacted if the pipeline is built.
“The previous owners of the Hunter Gas Pipeline knew the fight they were in for, so it’s no wonder they were all too happy to offload this poisoned chalice onto Santos,” Mrs Fleck said.
“It is totally inappropriate and downright dangerous for any company to build a high-pressure gas pipeline through the vertosol soils of the Liverpool Plains. These soils crack and swell, and they also happen to be some of the best soils for food and fibre production in the state.
“This also proves Santos’ intent to rip apart the Liverpool Plains with hundreds of new gaswells, with the company recently announcing plans to conduct seismic testing in the world-renowned foodbowl.”
Subject to receiving remaining government approvals, construction of the pipeline is expected to commence in early 2024.
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